Many are asking if it is now the right time to invest in South Florida real estate. Is the market at its lowest? Because of this question and also because of the struggling economy many people are holding off and waiting for a sign to make their investment happen. We are seeing Fort Lauderdale rentals on the rise due to the displacement of so many homeowners who lost their properties to foreclosure and short sale. This has affected the available rental inventory in South Florida. South Florida rentals are becoming challenging to find due to a high demand and a lower and lower supply.
Will the South Florida housing market remain strong?
Will the overall trend eventually show an increase over a long-term period?
Many of these items point to a "Yes" to these questions for Fort Lauderdale Home Sales:
- Strong Trade & Tourism - Constant trade and commerce links with Latin American countries help to add more weight, and tourism remains strong in South Florida.
- Stock Market - When the stock market is more volatile people put their money into real estate.
- Baby Boomer Market - 75 million baby boomers entering retirement during the next decade. The number of homeowners in the 50-75-year-old bracket is projected to increase 65% in the next 20 years. South Florida's weather and water will always draw these boomers to make it their choice place to retire.
According to the Florida Association of Realtors in their article The upside of Florida real estate: 15 market positives - "Over the long term, Florida stands to benefit from the migration of the aging Baby Boomer generation, roughly 80 million strong. Demographic studies show that the Sunshine State's mild climate and outdoor amenities continue to make Florida a favorite retirement destination."
- Foreign Immigration - Florida's population over the last 50 years has grown due to both foreign and domestic migration. Since 1970, Florida has grown at over three times the rate of the entire nation. In the 1980's Florida had a 57% increase in population that were born outside of the US.
- Retiree Population Strong....The state also has the highest populations of senior citizens in the nation, as Florida ranks among their top choice for retirement. Which leads to our next point.
- Job Market Strong....This influx of retirees leads to more job opportunities in health care placing the state high in job opportunities, with lowest unemployment and fastest job growth rate of the country's ten most populated states.
- A long-term-growth state - Florida shows long term economic and demographic upward trends in population growth. At the end of 2010 economists forecast that Florida will be the third-most-populated state in the country. Because of this increase in population florida's economy will be affected in the positive as this will assist its economy in growth as well. And in return a growing population, a long-term growing economy will in turn lend to an increase in real estate market trends.
- Climate & Destination - We cannot forget that South Florida's climate is a draw to people from around the country and around the world. To add to that benefit Fort Lauderdale's waterways and beaches are a huge attraction. Fort Lauderdale has been termed "The Venice of America" with its sparkling waterways that mozy by waterfront mansions with yachts in their backyards.
Even though the real estate "experts" want the public to believe that home prices have dropped drastically and we are in a catastrophic state, the Florida real estate market still shows signs of an increasing market when analyzing the trends over a long term period. In the long run, the general public's belief in our "softening market" may actually be a benefit to the true real estate investor, as we see the speculators, flippers and developers, that drove the market pricing above its true value into unaffordable highs, out of "business" permanently.
What better time to buy when you can purchase a higher quality property at an amazing value and lower interest rate.
Andrea Tsakanikas, International Luxury, October 9, 2010.
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